Employee benefits plan is an essential component of a complete compensation package. This is because they provide a safety net for workers and their families if something goes wrong.
Regardless of size or industry, company employee benefits policies should exist to safeguard their staff from unforeseen events and help them succeed at work.
But what employee benefits should you provide?
This article will cover some of the most crucial employee benefits policies you need to know as an employer in Singapore and inspire you with dozens of supplementary benefits.
Employee benefits are, simply put, compensation that employers offer their workers to reward them. This includes bonuses and allowances in addition to non-cash perks like insurance or leave.
The Employment Act is Singapore's main labour law. It provides basic terms and conditions at work for workers covered by the act.
Before we get into the nitty-gritty, it's crucial to know who is covered by the Employment Act.
Workers who are covered by the Employment Act are local or foreign employees contracted under an employer (including full-time, part-time, temporary, and contract workers) and paid by either hourly, daily, monthly, or piece-rated.
Note: If your people are working less than 35 hours a week, they're categorised as part-timers and their employment T&Cs are listed in Employment of Part-Time Employees Regulations.
The Employment Act does not cover some workers. In this case, their work T&Cs should follow their employment contract. They are:
Here comes the interesting part. Part IV of the Employment Act has unique coverage.
(In case you're wondering, Part IV is where it contains hours of work, overtime pay, and rest days.)
Not every employee is covered by Part IV. The eligible employees are:
Now that we've understood who is covered and who's not, let's dive into the mandatory and supplementary benefits.
The CPF is a mandatory social security savings scheme funded by contributions from employers and employees.
The CPF is a key pillar of Singapore’s social security system, and serves to meet our retirement, housing and healthcare needs.
The government also helps to supplement the CPF savings of lower wage workers through schemes such as Workfare and top-ups to MediSave for senior citizens.
This is one of the most challenging puzzles to solve when planning for your company.
While it's easy to think of solutions from your perspective, try something different this time.
Create conversations with your employees and genuinely ask them about what they think about your employee benefits package. Most companies start this process through a benefits sentiment survey.
Doing this builds trust and loyalty among your employees and fully utilises your budget on benefits that matter.
Finding out the most important benefits for your employees is going to take time and effort. But the prize at the end of the tunnel is extremely rewarding.
Companies that have done this are enjoying higher productivity, increased bottom line, stronger trust and loyalty, better engagement, lower turnover rate and more.
Well, if you're still not sure whether you want to commit to 'finding out the most important benefits' process or not, you can look at this survey that has listed the top employee benefits that attract and retain talents in Singapore.